South Korea's upgrade program got under way last summer, when the country chose Britain's BAE Systems (BAES.Y 0.48%) over Lockheed Martin (LMT -2.00%) to serve as prime integrator in the project -- a surprising development, given that Lockheed built the planes in the first place.
The upgrades that will be made are substantial, including the installation of new software, a new fire control computer, radar, data exchange system, display, and new, more advanced air-to-air and air-to-ground ordnance. Raytheon's role in all this will be to supply its new Raytheon Advanced Combat Radar, an active electronically scanned array radar system, in the 134 planes.
Deliveries will begin in 2016. Raytheon's share of the $1.1 billion in project payouts was not revealed.